A Personal Finance Blog for Malaysian

Tuesday, February 6, 2018

Buying a property and securing a mortgage is one of the biggest things you’ll ever do. House prices in Malaysia are 4.4 times the median income of a Malaysian family, meaning many are securing high mortgages in order to get on the property ladder. Therefore, the last thing you want to be hit by as you’re preparing for one of the happiest times in your life is a mortgage scam. So, whether you’re purchasing home insurance online, shopping for furniture or checking your emails, it’s important to be aware of scammers trying to target you and your future home.

Common mortgage scams

Malaysians under 30 years of age are most at risk of falling foul to an online scam, therefore it’s vital to be on your guard when applying for a mortgage.Land scams are on the risein Malaysia, so if you’re purchasing a property with adjoining land make sure that everything is above board and has an individual grant, otherwise, you could find yourself in trouble with your mortgage lender.

You’d expect lawyers to be trustworthy citizens, however they can - and do - commit fraud. A local lawyer is currently under investigation for manipulating sale prices and purchase agreements on loan agreement paperwork. He is believed to have kept the money loaned and to have told his clients their loans had been declined. This further facilitates the need for borrowers to be cautious of all those they have dealings with when purchasing a mortgage and to check everyone out as thoroughly as they can.

Case study

In one local fraudulent case, the scammer acted as a freelance real estate agent and gained the trust of a newly appointed Bank of Arendelle panel member. The fraudster convinced his victim that she was better off if he delivered and collected all her mortgage paperwork. However, the paperwork was fraudulent. The end result of the scam was the purchaser defaulted on the loan sum.

Reverse mortgage scams

It’s not just youngsters who are at risk of mortgage fraud either. Reverse mortgages were introduced to benefit the ageing population, however, scammers have used this type of mortgage to their advantage to fleece the elderly out of the money and even their homes. Some of the most common reverse mortgage scams include fraudsters selling seniors products they don’t require or want and deceiving those whose homes are at risk of foreclosure.

Mortgage fraud is just one of the many types of fraud that Malaysians need to keep an eye out for. However, due to the nature of the crimes, the money involved and the possible implications, it’s one type of fraud which often hits harder than most.

Tuesday, October 31, 2017

Seventy-eight percent of full time workers said they live paycheck to paycheck.

Overal, 71 percent of all U.S. workers said they'are now in debt.

While 46 percent said their debt is manageable, the rest said they were in over their heads.

Even those making over 6 figures said they struggle to make ends meet. Nearly 1 in 10 of hose making 6 figures or more said they usually or always live paycheck to paychecks, and 59 percent of those in that salary range said they were in the red.

Back to Malaysia, what do you think?

Why likely we are the same as American?

Globalisation.

From 2010 to 2017, few key changes in Malaysia causing more people living from paycheck to paycheck and in debt.

Rising property price (bubble in the making)

Low interest rate

Implementation of GST

Sharp depreciation of Ringgit

Cutting down lifestyle is the key for those in the red. Debt must be paid first before one can have long term healthy growth in personal Net Worth.

Beside Tax Saving, for which some people don't care because of low tax bracket, there is ONE more reason you might want to consider to 'save' with SSPN - effective 2012, you can't borrow from PTPTN unless you have saving in PTPTN (under SSPN)However, the new scheme has a surprise element - the 'takaful' element THAT you are 'forced' to buy insurance (in Bahasa, Sumbangan Takaful) which is relatively 'expensive' but it is still a good plan for those can't afford a conventional medical plan, or life insurance, yet want to provide a saving for their child(ren) education.IF you don't wish to have the "takaful" element., stick to the SSPN-i (without the Plus)

Based on my personal experience, the effective rate of return for past 10 years is merely ~3.75% p.a.Why save with PTPTN?

Tax relief, which may be 28% for those having chargeable income of RM1,000,000 and above OR 21% for hose having chargeable income of RM70,000 and above, which is still substantial for first year of contribution.

Disadvantage of PTPTN saving (i.e. SSPN)??

Low return (2007 to 2016, effectively only 3.75% p.a.)

SSPN-i required contribution for insurance element, which you may not need (or aware...). The benefits is not provided to you FREE, you pay for it.

Tried to open an account for 2nd child but server down. You may try it here to open SSPN-i account online, save for Tax Relief before 31.12.2017.

Saturday, October 7, 2017

More and more (financial) products are available online now at lower cost or price.
(Askchong: lower not necessary cheap)

Consumer can go direct, get lower price or with discount, for products like Motor (car) insurance, Travel insurance, Term Life etc.

Example:

Hong Leong Assurance's products available to public via online, without agents, supposedly cheaper as no commission to be paid to agent/agency.https://www.hlatouch.my
(Askchong: this link is hidden under www.hla.com.my and no marketing to really show to the public)